Regulator rejects TransCanada's review of mainline tolls

June 12 (Reuters) - Canada's National Energy Board rejected
TransCanada Corp's request to review its decision to
cut fixed tolls on the company's mainline, a cross-country
natural gas pipeline network, the company said on Wednesday.

In March, National Energy Board (NEB) agreed to cut fixed
tolls on TransCanada's mainline, which the regulator says will
help keep the system competitive and profitable despite
increasing supplies from U.S. shale gas producers.

The board approved new rates that will see the cost of
moving gas from Empress, Alberta, to Dawn, Ontario, fall to
C$1.42 per gigajoule from C$2.58 per gigajoule under the tolling
structure.

In its review application filed May 1, TransCanada asked the
board to adjust the five-year "Empress to Dawn" toll to $1.52
per gigajoule from $1.42 per gigajoule.

The NEB informed TransCanada on June 11 that it is
dismissing the company's review and variance application in its
entirety. The NEB said in its letter that it will provide its
reasons for dismissing the application at a later date,
according to the company.

"We are very disappointed that the NEB rejected our review
and variance application without the opportunity for a full
hearing and without issuing rationale for its rejection,"
TransCanada Chief Executive Russ Girling said in a statement.